Firm in Gallo kickback probe hosted state GOP boss on fishing junket

Jerry Labriola Jr., center, chairman of the Connecticut Republicans, seen in this August 2011 contributed photo following a fishing junket paid for by Direct Mail Systems, the Clearwater, Fla., firm under investigation for paying kickbacks.

Jerry Labriola Jr., center, chairman of the Connecticut Republicans, seen in this August 2011 contributed photo following a fishing junket paid for by Direct Mail Systems, the Clearwater, Fla., firm under investigation for paying kickbacks.

The Florida direct mail company that was the source of kickbacks paid to a former House GOP chief of staff, who steered taxpayer-funded candidates to the firm, hosted Connecticut’s top Republican on a fishing junket in 2011.

State GOP Chairman Jerry Labriola Jr. was a guest of Direct Mail Systems Inc. on a fishing charter organized by the Clearwater, Fla., firm during the Republican National Committee’s summer meeting in Tampa, Hearst Connecticut Media has learned.

The go-to vendor for Republican candidates from Connecticut predating Labriola’s election as chairman, the firm invited Labriola and several of his counterparts from other states for an afternoon of fishing off the Gulf Coast, multiple people familiar with the trip told Hearst.

At the time, George Gallo, the chief of staff for the Connecticut House Republicans, was collecting kickbacks from the company totaling $117,000 for steering printing contracts to the firm. Gallo, who held Labriola’s job as chairman in 2006, pleaded guilty Monday in federal court to mail fraud and could face 15 to 21 months in prison.

“George Gallo had no association with the state party during the time in question. Therefore we see no reason to comment further,” said John Kleinhans, the Connecticut GOP’s executive director.

Labriola declined to be interviewed.

State GOP officials emphasized that Labriola immediately severed the party’s ties with the firm when FBI agents raided House GOP offices at the Capitol in February 2014.

Michael Milligan, the company’s chief operating officer and vice president, was on one of the other boats. He did not respond to a request for comment Thursday.

In a photo obtained by Hearst, Labriola, who had been elected chairman less than two months earlier, can be seen hoisting a trophy for reeling in the most fish during the junket. The optics don’t exactly look good for Labriola, who has been on the hot seat since the state GOP was shutout in November’s midterm elections for Congress and statewide office, including the governor’s race.

Prosecutors say Gallo lied to the FBI about getting a 10 percent kickback for steering contracts to Direct Mail Systems, which earned more than $1 million from candidates participating in the Citizens’ Election Program. At the time, House candidates could each get up to $25,000 in taxpayer grants if they raised $5,000 in political contributions. The program was created in 2005 to level the playing field for candidates without deep pockets and reduce special-interest money in politics.

A Justice Department spokesman declined to comment Thursday on the scope of the investigation or say whether it’s still ongoing.

Gallo confessed under oath that he lied to then-House Minority Leader Lawrence Cafero Jr. about his financial stake in the scheme, which took place from 2008 to 2013. His sentencing is scheduled for July 29.

Neil Vigdor